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Nifty 50 November Futures (10,620)
Nifty 50 futures contract has been trading on a mixed note. The contract has been stuck between 10,590 and 10,650 for some time now. A breakout on either side of 10,590 or 10,650 will determine the next move. Traders can stay out of the market until the range breakout gives a clear cue.
A strong break below 10,590 can take the contract initially lower to 10,575. A further break below 10,575 can then target 10,540 and 10,520.
On the other hand, if the Nifty 50 futures contract breaches 10,650 decisively, it can gain fresh momentum. Such a break will confirm an inverted head and shoulder pattern on the intraday chart. This is a bullish pattern. The contract can then witness a fresh rally to 10,700 or even higher levels in the coming sessions.
Traders can wait on the sidelines and go long on a break above 10,650. Stop-loss can be placed at 10,635 for the target of 10,695. Revise the stop-loss higher to 10,665 as soon as the contract moves up to 10,675.
Strategy: Go long on a break above 10,650 with a stop-loss at 10,635
Supports: 10,590, 10,575
Resistances: 10,650, 10,700
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